GBP/USD: Trading a breakdown of 1.31
GBP/USD is another “goes lower in the bad times” asset - this time in the forex market -
USD is the haven currency and GBP for whatever reason is deemed more risky.
GBP/USD had broken out to multi-week highs but stuttered since.
This could be a natural pause before the upside moment resumes or this is a ‘fakeout’ and we’re heading for another test of the rising trendline on the weekly chart.
We’d prefer not to guess which one it is but rather wait and see.
The 4 hour chart shows a large bearish engulfing candle at the end of the week, adding bearish momentum to the weekly ‘indecision’.
A break below support at 1.31 would open up a much bigger pullback with 1.29 sitting just above the 61.8% Fibonacci retracement level.
But that’s just what we think, do you agree or disagree?
Send us a message and let us know
Happy Trading!
Jasper, WeTrade Market Analyst and Founder of Trading Writers.
USD is the haven currency and GBP for whatever reason is deemed more risky.
GBP/USD had broken out to multi-week highs but stuttered since.
This could be a natural pause before the upside moment resumes or this is a ‘fakeout’ and we’re heading for another test of the rising trendline on the weekly chart.
We’d prefer not to guess which one it is but rather wait and see.
The 4 hour chart shows a large bearish engulfing candle at the end of the week, adding bearish momentum to the weekly ‘indecision’.
A break below support at 1.31 would open up a much bigger pullback with 1.29 sitting just above the 61.8% Fibonacci retracement level.
But that’s just what we think, do you agree or disagree?
Send us a message and let us know
Happy Trading!
Jasper, WeTrade Market Analyst and Founder of Trading Writers.
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